Be Upfront with your Loan Officer

Clay Johnson:                    Hi, Clay Johnson here with Castle & Cooke Mortgage and I’m with Cheryl Knowlton with Dynamite Productions. Always fun to come together. We’ve been thinking a lot about credit this week, ways of dealing with that, and we wanted to talk a little bit more about hiding and how that can really cause some challenges for you. So, Cheryl, I know you’ve had some experiences with this also, tell us a little bit about that.

Cheryl Knowlton:             Absolutely, and we’ve talked about this before, just in situations that I’ve had back in when I was on the lending side and I’ve even seen it on the real estate. Please, be very up-front with your loan officer and with your real estate professional. Don’t lie about anything because it’s going to get found out. The things that I have heard just absolutely blow my mind. Crazy, so as we’re talking about credit, we’ll think about the other crazy later. Just an individual who did not tell his current wife that he had been married before, and had a child before.

Clay Johnson:                    Oh, wow. That’s, yeah.

Cheryl Knowlton:             So when we did their initial preliminary report there was no child support judgment on there, everything looked fine. We got the loan approved, we’re marching down, we are ready to pull docs.

Clay Johnson:                    Right at the finish line.

Cheryl Knowlton:             We are at the finish line and the lender pulled another preliminary title report and called me in a panic, “We’ve got a $10,000 child support judgment,” so that was a fun conversation. I didn’t know that he hadn’t told her that he had been married before and had a child and hadn’t been paying his child support.

Clay Johnson:                    A little bit of friction there.

Cheryl Knowlton:             A teeny bit and this was on a sale of a home and so that affected what they were receiving back, their net by $10,000. That conversation went over at their house like a pregnant pole vaulter on a windy day. That was not good, and they ultimately finished the transaction but they got divorced.

Clay Johnson:                    Oh, well, that’s a big hide.

Cheryl Knowlton:             That’s horrible.

Clay Johnson:                    Yeah, we’ve all seen where spouses do that and they don’t know about accounts. We’re pulling a credit report and the other one’s sitting there like.

Cheryl Knowlton:             I was hoping nobody would find out. If there’s any, “I was hoping nobody would find out about that,” that’s a problem.

Clay Johnson:                    So anyway, I hope that helps out you, guys. Look forward to talking to you soon. It’s been a great week talking about these things with credit, and we will catch you next time.

Cheryl Knowlton:             Take care.